By — Isabel DeBre, Associated Press Isabel DeBre, Associated Press By — Emilio Sanabria, Associated Press Emilio Sanabria, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/world/paraguay-prosecutor-will-seek-charges-against-embattled-president-after-bank-collapse Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Paraguay prosecutor will seek charges against embattled president after bank collapse World Nov 5, 2026 6:16 PM EST ASUNCIÓN, Paraguay (AP) — Paraguayan President Santiago Peña is under criminal investigation following the collapse of a major digital bank, prosecutors announced, hours after the South American leader's resignation and impeachment Thursday. The crisis at Ueno Bank turned Peña's long-ruling Colorado Party against him, a stunning reversal for the former International Monetary Fund economist who had enjoyed the backing of the country's most powerful politicians and was welcomed in Washington just weeks ago as a key ally of the Trump administration. READ MORE: How the digital era helped speed up bank runs Minutes after Peña's announcement, the lower house voted 78-0 to impeach him, sending the charges to the Senate. Congressional leaders will continue voting Friday on whether to accept Peña's resignation, which…
Paraguay prosecutor will seek charges against embattled president after bank collapse
In short
Attorney General Emiliano Rolón Fernández has initiated three separate inquiries examining the digital lender's failure, institutional oversight, and the deposit of public money into the collapsed bank. Congressional leaders must now decide whether to accept Santiago Peña's resignation—clearing the path for Vice President Pedro Alliana—or force an outright removal to prevent the former leader from gaining senator-for-life protections. Until last year, Peña maintained a stake in an entity tied to Ueno Bank, which had expanded to serve over 60% of the country's adult population before folding. Former political patron Horacio Cartes has joined the opposition in endorsing Peña's impeachment ami…
Key points
- Accepting Santiago Peña's resignation would allow Vice President Pedro Alliana to assume…: Accepting Santiago Peña's resignation would allow Vice President Pedro Alliana to assume power without the need for a Senate trial.
- Opposition lawmakers are demanding an outright removal to prevent the departing president…: Opposition lawmakers are demanding an outright removal to prevent the departing president from securing lifelong senatorial immunity from prosecution.
- Former President and Colorado Party leader Horacio Cartes withdrew his political support…: Former President and Colorado Party leader Horacio Cartes withdrew his political support to endorse the embattled leader's impeachment.